JG Summit first quarter profit dips


The Gokongwei-led conglomerate, JG Summit Holdings Inc., recorded a lower profit in the first quarter of 2013 from smaller mark-to-market gains and net foreign-exchange loss.

In a filing with the Philippine Stock Exchange, JG Summit disclosed that its net income from equity holders of the parent slightly dropped to P4.86 billion from P4.91 billion for the first quarter of 2012.

The conglomerate, however, posted core earnings before tax of P7.46 billion for the first quarter of 2013, a 27.1-percent increase from the P5.87 billion recorded in the same period last year.

The group’s mark-to-market gain recognized during the first quarter of fiscal 2013 amounted to P248.78 million, a 64.6-percent drop from last year’s P703.15 million, as its financial assets become affected by the volatility of the international financial markets during the period.

JG Summit also recognized a net foreign-exchange loss of P86.63 million, a complete turnaround from last year’s net foreign-exchange gain of P805.98 million, mainly from the lower translated value of foreign currency-denominated net assets of its food business as a result of the continuous appreciation of the peso during the period.

Consolidated revenues of the company, however, climbed 8.4 percent from P35.46 billion to P38.43 billion from the strong performance of all business units, except for its petrochemical segment.

“Revenues from our core businesses—foods, airlines, real estate—which posted double-digit percentage growth and the consistent dividend income generated from our core investments were major contributors to the increased revenues for the first three months,” the group said.
Madelaine B. Miraflor


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